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Published on 8/10/2021 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley prices $1.54 million callable contingent income securities on indexes

By William Gullotti

Buffalo, N.Y., Aug. 10 – Morgan Stanley Finance LLC sold $1.54 million of callable contingent income securities due Feb. 24, 2026 tied to the worst performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Quarterly, the notes will pay a contingent coupon at the rate of 6.55% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.

The notes will be callable at par on any quarterly observation date after six months.

The payout at maturity will be par plus the coupon unless any index finishes below its 56% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

Issuer:Morgan Stanley Finance LLC
Guarantor:Morgan Stanley
Issue:Callable contingent income securities
Underlying indexes:Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
Amount:$1,543,000
Maturity:Feb. 24, 2026
Coupon:6.55% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
Price:Par
Call option:At par on any quarterly observation date after six months
Payout at maturity:Par plus coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
Initial levels:33,896.04 for Dow, 2,193.642 for Russell, 13,237.91 for Nasdaq
Coupon threshold levels:23,727.228 for Dow, 1,535.549 for Russell, 9,266.537 for Nasdaq; 70% of initial levels
Downside threshold levels:18,981.782 for Dow, 1,228.44 for Russell, 7,413.23 for Nasdaq; 56% of initial levels
Pricing date:May 19
Settlement date:May 24
Agent:Morgan Stanley & Co. LLC
Fees:0.5%
Cusip:61771VW97

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